Useful Information - The Kingdom of the Netherlands
Investor Information -• Business behaviour and travel |
The Kingdom of the Netherlands -• About the Netherlands |
A lot of interesting facts and figures have been compiled in a single, easy-to-use booklet entitled Holland Compared. Key economic data regarding the Dutch economy has been compiled from information supplied by renowned institutes and is reported and placed in an international context alongside data for other countries, allowing the reader to place The Netherlands' performance in a true global perspective.
The articles below are a compilation of excerpts taken from different publications of the Netherlands Foreign Investment Agency and the Netherlands Agency for International Business and Cooperation.
Business behaviour and travel: practical Information
Negotiation strategies
The Dutch tend to be organised and work according to schedules. Punctuality, therefore, is essential. Once a meeting is underway the Dutch get directly down to business. Dutch negotiators are generally very direct, effective and agile in their business dealings. Decisions are often reached by consensus, with all parties concerned being consulted. In business, the Dutch are quite conservative and generally restrained in their behaviour. They do not value exaggeration or ostentation and they avoid any attitude indicating superiority; as the Dutch regularly say: "being yourself is good enough". Outside the meeting-room, popular topics of conversation include: history, travel, art and sports (especially football). Politics, religion and some social issues (legalised prostitution, euthanasia, drugs policy, etc.) should generally be avoided.
Entry requirements
Passports are required by everyone, apart from EU residents travelling on national ID cards. Visas are required by all, except for nationals of the EU and Schengen Accord signatory countries, North America, Australasia and Japan Netherlands
Further information:
Further information:
-
Embassy of the Kingdom of the Netherlands (Abu Dhabi)
Investing in the Netherlands
The Netherlands Foreign Investment Agency, NFIA, can assist businesses contemplating investment in the Netherlands. Many foreign companies have already established a subsidiary or headquarters in the Netherlands. NFIA presents 6 key reasons to invest in the Netherlands:
1. Strategic location in Europe
The Netherlands provides a strategic location from which to serve markets within the current and future European Union, the Middle East and Africa. The centrally-located geographical position of the Netherlands, combined with accessibility and an excellent infrastructure are some of the key reasons why numerous European, American and Asian companies have established facilities in the Netherlands.
2. International business environment
The Netherlands, long Europe's trading crossroads, is an obvious choice to locate an operation, whether it is a European headquarters, a Shared Services Centre, a Customer Care Centre, a distribution and logistics operation, or an R&D facility. The country's pro-business environment creates a strong basis and provides a gateway to Europe that helps international companies penetrate into the continent. An international outlook and openness to foreign investment is firmly ingrained in the Dutch culture and this has yielded a wealth of world-class business partners who know how to deal with global business challenges in today's economy.
3. Superior logistics and technology infrastructure
The Port of Rotterdam is the world's third largest seaport, while Amsterdam Schiphol Airport is recognised as one of the major business hubs in Europe and has garnered over 100 international awards over the last couple of decades. The Netherlands is also classified as one of the most 'wired' countries in the world, a dynamic force in electronic commerce, communications and outsourcing. More than a decade of investment in high-speed Internet, cable and digital communication systems, as well as the rapid adoption of state-of-the-art computer and mobile phone technology, have created an ideal base for companies seeking to take advantage of modern technology.
4. Highly educated, multilingual and flexible workforce
The Netherlands features one of the most highly educated, flexible and motivated workforces in Europe. Dutch professionals are also among the most multilingual in the world, enabling them to successfully operate in companies in many industries, serving customers throughout the continent.
5. Quality of life
The Netherlands is proud to have a high standard of living, whilst also being able to maintain an affordable lifestyle for its residents. The costs of living, housing, education and cultural activities are lower than in most Western-European countries.
6. Fiscal climate
Since January 2007, the Dutch tax environment for international companies has become even more attractive. The corporate tax rate has been lowered to 25.5 percent; well below the EU average. Additionally, dividend tax has been reduced from 25 percent to 15 percent. Furthermore, a patent box with a 10 percent tax rate on income from innovations was introduced. Combined with other traditional features of the Dutch tax system (wide tax treaty network, participation exemption, 30 percent tax break for highly qualified foreign employees) the fiscal climate is quite simply one more reason for companies to establish or expand their European operations in the Netherlands.
Further information:
For centuries, the Netherlands Netherlands Netherlands
The principal taxes in The Netherlands are corporate and personal taxes on income and value-added tax. Additionally, individuals are liable to a number of other taxes, such as inheritance and gift tax.
The fact that the
Further information:
Labour Market and Law
Labour policy
The primary aim of Dutch labour market policy is to increase labour participation and to reduce unemployment. This policy goal is in accordance with the objectives of the European Union’s Lisbon Agenda. The government’s labour policy is aimed at removing as many obstacles as possible for people wanting to participate in the labour market.
Further information:
Further information:
Social security
The
Further information:
Labour migration
Working in the
Further information:
In the Netherlands
The EVD can assist businesses by providing a model of a contract specially developed for activities requiring a mercantile agent to promote the sale of goods in the Netherlands
The branch organisation for intermediaries in the Netherlands
- Association of intermediaries, VNT
- Intermediaries in wine and spirits (Dutch only)
- Intermediaries in textiles and clothing (Dutch only)
- Timber agents
VNT also represents the following sectors: sanitary equipment; tools; machinery; footwear; paper; and furniture.
About the Netherlands - One of the most competitive economies in the world
The Netherlands is a constitutional monarchy. Queen Beatrix is the head of state. The capital city is Amsterdam and the seat of government is The Hague. The Netherlands measures 41,528 square kilometers, 7,745 of which is water. The highest point is 321 meters above sea level and the lowest 6.7 meters below sea level. The Netherlands has a temperate marine climate. The average temperatures are 16ºC (61º F) in summer and 3ºC (37ºF) in winter. The population of the Netherlands is 16.4 million, with 7.6 million in employment. The official language is Dutch and approximately 85% of all Dutch people speak some English. The national currency is the euro. The largest cities of the Netherlands are: Amsterdam, 743,000 inhabitants; Rotterdam, 600,000 inhabitants; The Hague, 472,000 inhabitants; and Utrecht, 281,000 inhabitants.
With 690, 000 Dutch companies and over 700 foreign companies (ranging from small and medium-sized to large multi-nationals) the Netherlands is among the top economies of the world. The Gross National Product ranks at the 16th position in the world and ranks at number 6 in the European Union.According to a number of international league tables published by renowned institutes such as the IMD Business School, the Economist Intelligence Unit, the World Bank and the World Economic Forum, the Netherlands is among the world leaders when it comes to the quality of its business climate. Compared with other European countries too, the Netherlands is an attractive location for companies seeking a European base and for those wishing to make investments.
There are numerous factors that form the basis for the favourable position that the Netherlands enjoys, including its open and international outlook, its strategic location in Europe, its well-educated, multilingual and flexible workforce, and the high level of labour productivity. The competitive fiscal climate, top-level physical and technological infrastructure and quality of life are also key contributors to the country’s success.The Netherlands is doing all that is necessary to improve, or at least maintain, this position.
Economic Development
Economic Performance
The Netherlands has emerged from its economic stagnation of the first half of the 2000›s and is once again in good shape. The very open Dutch economy has benefited from the supportive international environment and investors have continued to be attracted by its business-friendly environment. The pace of real GDP growth has strengthened since 2005, unemployment has fallen back to a low level and the fiscal position has been brought back into balance. Although the current recovery is partly cyclical, it is also built on an impressive underlying performance, which has helped to maintain income per capita among the highest in the OECD.
International trade
The Dutch economy has a strong international focus, as the Netherlands is one of the European Union›s most dynamic centres of trade and industry. Owing largely to its favourable location by the North Sea, it plays a key role as a main port and distribution centre for companies operating worldwide. The port of Rotterdam handles some 377 million tonnes of goods every year, and is one of the largest ports in the world; while Amsterdam›s Schiphol Airport is one of the largest airports in Europe. For these reasons the Netherlands is often called the "Gateway to Europe".
The Netherlands› position in global competitiveness has strengthened, placing it among the world›s top ten. The Netherlands moved up from the 11th position in the Global Competitiveness Index (GCI) to the 9th position in 2007, according to a 2007 report published by the World Economic Forum (WEF). For a number of years, the Dutch economy has consistently succeeded in generating trade surpluses.
Industry
Dutch industry has reacted swiftly to technological advances, producing knock-on effects throughout the economy. The information and communications technology sector now accounts for nearly 20% of total GDP growth. In addition, biotechnology is playing an increasingly prominent role in more traditional sectors such as agro-food and chemicals. These trends have been spearheaded by Dutch and foreign firms alike, especially in the fields of information and communications technology, life sciences and chemicals.
Competitiveness
According to the Economist Intelligence Unit, the global business environment rankings paint a relatively favourable picture of the global operating environment over the next five years. The average country business environment score in 2008-2012 is 0.43 points higher than in 2003-2007. The Netherlands scores well, ranking in 9th place. Factors cited in this report (global ranking model measuring the quality of the business environment of 72 countries) include: the stable political environment; sound regulatory framework; and close trading relationships with its regional neighbours.
Export and import
Figures from Eurostat (epp.eurostat.ec.europa.eu/) indicate that, in 2007, the Netherlands was the EU’s third top exporting country after Germany and France. Prime reason for this is the fact that the Netherlands plays a key role as a hub in the distribution of goods to other European countries. Dutch exports also grew substantially in 2007. If the current trend continues, the Netherlands will move up to take second position in 2008. With 968 billion euro, Germany was easily the EU’s largest exporter. In 2007, the Netherlands exported goods worth around 400 billion euro, more than the collective export values of the new EU member states which joined the EU in 2004 or 2007.
Relative to other countries, the Netherlands exported large volumes of food products, gas oil and natural gas.
Trade prices developed a little more favourably in 2007 than was the case in 2006. In 2007, a moderation in oil prices and the strength of the euro translated into much slower increases in import prices, helping to offset the unfavourable trend in net export volumes. As a result, the trade surplus remains fairly stable. In general, it is expected that the current-account surplus will decline as a percentage of GDP, in 2008.
In the long term, it is expected that the Netherlands will continue to record substantial surpluses on the current account, mainly because of the large and persistent surplus on merchandise trade. The National Bureau of Statistics (CBS) features comprehensive information on international trade.
Nice to Know
Accommodation
The Netherlands boasts of a wide range of accommodation to suit your style and needs. Hotels, Bed & Breakfasts or Bungalows are widely available, ranging from basic to luxurious. Prices are dependent largely on the type of accommodation and the season. During summer an advance booking is advisable.
Service Charges and Tips
Value-added tax and service charges are included in hotel, restaurant, shop bills and taxi fares. Tips for extra services are appreciated and a tip of 10% is customary.
Shopping
Generally shops are open from Mon-Fri 8.30am or 9.00am to 5.30pm or 6.00pm. On Saturdays they are open till 5.00pm. In cities most shops are open till 9.00pm on Thursdays or Fridays and once a month on a Sunday. In Amsterdam, Rotterdam and Den Haag shops are open every Sunday.
Banks
On week days Banks are open from 9.00am to 4.00pm / 5.00pm. Some banks are open on Saturdays and during late night shopping hours.
Attractions
Netherlands offers museums, amusement parks, zoos and a variety of other special attractions for every age group. These can be enjoyed in any weather.
Museums
The Netherlands has over 900 museums. These are spread not only across cities but also in the midst of the countryside. These help discover the rich heritage and the fascinating present. To name a few: Groningen Museum, Kroller-Muller Museum, Mauritshuis, Naturalis, Rijksmuseum, Van Gogh Museum, Zuyder Zee Museum.
Medical Care and Chemists
Travellers covered by medical insurance are entitled, by law, to medical care in Holland. Most chemists are open from 8.00 / 9.00am to 5.30 / 6.00pm. Some chemists are open during evening, nights and weekends.
UAE - The Netherlands Bilateral Relations
The Netherlands share many features with the UAE. This might be a reflection of the past, as the Netherlands came to the Arab region for the first time in 1638. By that time the Netherlands started the East Indian Company to trade with the Arab world. Spices from the Indies were traded for silk, for the market in the Netherlands. This means at least that the Netherlands has had long term ties with the Arab nations. There are other similarities. Both countries are relatively small from a geographic point of view; they are both coastal countries and while the Netherlands is the Gateway to Europe, the UAE is the Gateway to the Arab world and Asia. In fact, both countries are specialized in trade. This also is the most important part of our bilateral relations.
Partly this is reflected by the large number of Dutch companies which have a presence in the UAE. Nearly all sectors are represented. Besides, the Netherlands has become a significant trade partner for the UAE. During the last five years, exports to the UAE grew each year by about 10% and grew from € 1215,8 million in 2004 to a total amount of € 1515,1 in 2005. Imports from the UAE went up from € 442,8 million in 2004 to an estimated € 1 billion (AED 5.5 billion) in 2006.
The UAE clearly sees the importance of the Netherlands for them. To strengthen bilateral relations they opened in October 2002 an Embassy in The Hague. Further proof of this strengthening of the bilateral relations can be seen in the fact that an Agreement on the Promotion of Investments has been initialed. In May 2007 a mutual agreement to avoid double taxation was signed. Subsequently, to further strengthen economic and investment relations with the UAE and to enhance bilateral trade with the business community at large, the Dutch government decided to open a Dutch Investment Office. The Netherlands Foreign Investment Agency was officially opened in January 2008. Its representative offices and the aforementioned agreements should surely contribute to a conducive environment providing incentives for companies from both countries to invest.
Also in the cultural field bilateral relations have developed. The organization of cultural events leads to a better understanding of each others heritage. The fact, that the celebration of the 400th anniversary of the East Indian Company through an exhibition in June 2002 in Abu Dhabi was a common action by the Presidential Court and the Dutch Embassy, should be seen from this perspective. Annually several concerts and exhibitions are being organized. Indirectly, the strengthening of ties through cultural events also promotes our trade relations as more people learn about each other.
The future looks very promising for the UAE. The Netherlands, through its considerable business presence and with the support of the Consulate General in Dubai as well as from the Royal Netherlands Embassy in Abu Dhabi, will most certainly contribute to this.
